What is the california dream for all program?

• California Dream for All is a new program offered by the state of California that provides first generation homebuyers with down payment money toward their home. Homebuyers receive a shared appreciation loan to help them reach a down payment up to 20%(not to exceed $150,000) of their home’s purchase price. This California housing program both reduces the primary mortgage loan and helps homebuyers avoid private mortgage insurance and higher interest rates.

• 20% down payment assistance is in the form of a silent second loan.

• The Dream For All home loan and assistance program is another example of how the state of California is helping homebuyers gain access to affordable financing, increase homeownership, and create generational wealth.

  Benefits of the California Dream For All Assistance Program:

• Lower monthly payment because you avoid paying private mortgage insurance (PMI)

• Lower monthly payment due to lower loan amount

• Increased buying power due to larger down payment and lower payment

• No monthly repayment of the subordinate silent 2nd assistance loan

• Homeowner doesn’t repay until they sell, refinance or transfer the property

Repayment of the Dream For All Assistance Loan

• Upon sale, transfer of the home, or if the borrower refinances, the homebuyer will repay the original down payment loan, plus a share or percentage of the home appreciation

What does Shared Appreciation Mean?

• Shared appreciation (or shared equity) just means that since the California State Housing Finance Agency is investing (partnering) in your ability to purchase a home that will build generational wealth for you, that you will split or share a small percentage of the increase in the value of the home when you sell, transfer ownership, or refinance

How Much Appreciation is ‘Split or ‘Shared’?

• The percentage of appreciation that is split or shared with the state housing authority when you sell or refinance depends on what your income is:

80%/20% Split = Borrowers with income between 80% to 150% of the AMI keep 80% of the home appreciation

85%/15% Split = Borrowers with income under 80% AMI keep 85% of the home appreciation

SHARED APPRECIATION EXAMPLE

Below is what a $500,000 purchase might look like if a moderate income homeowners sells after 5 years:

Frequently asked questions:

question: what is a shared appreciation loan?

Answer: Unlike a traditional loan, a shared appreciation loan is paid back upon the sale of the home or refinance of the loan. The amount you pay back is based on the amount your home changes in value.

question: who qualifies for this program?

Answer:

One borrower must be a first-generation homebuyer: A first-generation homebuyer is defined as a homebuyer who has not been on title, held an ownership interest or have been named on a mortgage to a home (on permanent foundation and owned land) in the United States in the last 7 years AND to the best of the homebuyer’s knowledge whose parents (biological or adoptive) do not have any present ownership interest in a home in the United States or if deceased whose parents did not have any ownership interest at the time of death in a home in the United States OR an individual who has at any time been placed in foster care or institutional care (type of out of home residential care for large groups of children by non-related caregivers).

All borrowers must be first-time homebuyers: To know for sure, you should understand that a first-time homebuyer is defined as someone who has not owned and occupied their home in the last three years, and who has not lived in a home owned by a spouse in the past three years

Income must meet CalHFA Income Limits for the county you are purchasing in.

question: why does this program exist?

Answer: The ability to afford a home is slipping farther out of reach for many working Californians. Accessing homeownership and making a large down payment is often even more difficult for low-income communities. The median home price in California reached $786,000 last year. For that price, a 20 percent down payment would be more than $157,000, which isn’t attainable for many low to moderate-income first-time homebuyers. To help secure the future of California, the state is using some of its budget surplus to help struggling home buyers with this program.

question: How can I make sure I’m ready to take advantage of the California Dream for All Program?

Answer: Please make sure to fill out the form below and we will give you more information on it as well as get you in a position to take advantage of the program before the funds run out!